The advantage of capital market performance
with a guaranteed principle
Structured Deposit Linked to Pharma Shares
Structured Deposit Linked to Pharma Shares, with Capital Protection
Basket of Pharma Shares
A deposit that participates in the return of a Pharma Shares basket with no risk to the invested capital
A 3 year structured deposit offering a return linked to the rise of a basket* of Pharma Shares, up to a ceiling of 40% for each
share, for the period of the deposit. The deposit return is calculated according to the paragraph: “Deposit Return”.
About the Deposit:
● The deposit is intended for customers who are interested in an
investment with a high return potential and guaranteed capital
repayment.
● The deposit offers exposure to a basket of shares that operate in the
pharma and healthcare industry.
● The pharma industry has two main growth engines: aging of world
population and strong growth in the developing markets.
● According to forecasts, these trends will lead to higher expenditures
on medical services and to an increase in sales of the pharma
companies in the near future.
● This year the sector is underperforming in regards to previous years
and to the S&P 500 which, according to analyst predictions makes
for a comfortable entry point to the sector.
Deposit Return:
● Each share has a ceiling (barrier) of 40% relative to its closing price
on the Deposit Start Date (Initial Price) “the barrier”.
● For each share in the basket, if its daily close prices did not touch
or breach the 40% barrier during the term of the deposit, the full
performance of the share, whether positive or negative, will be
taken into account for the calculation of that share’s performance
in the basket.
● If on any given trading day the close price of any share should touch
or breach the barrier (even once), the performance of that specific
share will be set at a fixed level of 6%.
● The interest income deriving from the deposit will be calculated
according to the average of the shares change rates in the period
as calculated above. In any case, the return of the initial investment
is guaranteed at redemption.
* The Shares Basket
Weight in the basket
Share Name
Share Symbol
Finance Sector
10%
TEVA PhARmAcEUTIcAL
TEVA UN Equity
Pharma
10%
PERRIGO cOmPANy PLc
PRGO UN Equity
Pharma
10%
myLAN NV
myL UQ Equity
Pharma
10%
GLAxOSmIThKLINE PLc
GSK LN Equity
Pharma
10%
ELI LILLy & cO
LLy UN Equity
Pharma
10%
GILEAD ScIENcES INc
GILD UQ Equity
Biotechnology
10%
TENET hEALThcARE cORP
Thc UN Equity
healthcare
10%
mERcK KGAA
mRK Gy Equity
Biotechnology
10%
ROchE hOLDING
ROG Vx Equity
Pharma
10%
cVS hEALTh cORP
cVS UN Equity
Pharma
It is hereby clarified that a structured deposit is deemed a transaction involving special risk.The bank has financial interest
in marketing the structured deposit.Therefore, the structured deposit may be given precedence over other similar products
in respect to their suitability for the customer.
It is hereby clarified that a structured deposit is deemed a transaction involving special risk.The bank has financial interest
in marketing the structured deposit.Therefore, the structured deposit may be given precedence over other similar products
in respect to their suitability for the customer.
This document is for information purposes only. The information in this document does not represent a recommendation and/or offer to invest in this structured deposit. This document does not
constitute or contain a basis of a contract. Furthermore, this document does not come to provide the customer with certain rights or to impose the bank with any obligations whatsoever.The content
above is not a substitute for personal advice. All information and data in the document arrive from sources which are considered by the bank to be true and trustworthy as of the date when the
document was produced. Nonetheless, the bank will not bear any responsibility for the correctness, completeness, propriety and accuracy of the information in the document. Any financial investment
involves risk. Past performances do not necessarily imply on future performances. * The basket is detailed at the next page.
This document is for information purposes only. The information in this document does not represent a recommendation and/or offer to invest in this structured deposit. This document does not
constitute or contain a basis of a contract. Furthermore, this document does not come to provide the customer with certain rights or to impose the bank with any obligations whatsoever.The content
above is not a substitute for personal advice. All information and data in the document arrive from sources which are considered by the bank to be true and trustworthy as of the date when the
document was produced. Nonetheless, the bank will not bear any responsibility for the correctness, completeness, propriety and accuracy of the information in the document. Any financial investment
involves risk. Past performances do not necessarily imply on future performances.
Historic Performance
Basket performance
Vs. S&P 500 in the last 5 years
Possible Scenarios
Basket performance
Vs. S&P 500 in the last year
The following table illustrates repayment amounts of the deposit, assuming an Optimistic, Neutral and Pessimistic
market scenarios, and the corresponding shares performances under the scenarios:
Optimistic Scenario
Neutral Scenario
Pessimistic Scenario
Share
Change
Rate
Actual Share
Performance
Barrier
Breach
Share
Change
Rate
Actual Share
Performance
Barrier
Breach
Share
Change
Rate
yes
6.00%
12.70%
No
12.70%
-58.50%
No
-58.50%
No
28.80%
2.15%
No
2.15%
13.40%
No
13.40%
yes
6.00%
Share
Actual Share
Performance
Barrier
Breach
Teva Pharmaceutical
46.20%
Perrigo company PLc
28.80%
mylan NV
23.00%
No
23.00%
48.22%
-26.80%
No
-26.80%
GlaxoSmithKline PLc
29.10%
No
29.10%
21.48%
No
21.48%
-19.60%
No
-19.60%
Eli Lilly & co
36.40%
No
36.40%
-25.89%
No
-25.89%
-52.00%
No
-52.00%
Gilead Sciences INc
16.70%
No
16.70%
-5.15%
No
-5.15%
6.28%
No
6.28%
Tenet healthcare corp
45.30%
yes
6.00%
12.42%
No
12.42%
-14.42%
No
-14.42%
-65.12%
merck KGaA
27.60%
No
27.60%
6.12%
No
6.12%
-65.12%
No
Roche holding
12.55%
No
12.55%
15.18%
No
15.18%
13.12%
No
13.12%
cVS health corp
22.40%
No
22.40%
-5.22%
No
-5.22%
-22.45%
No
-22.45%
Basket Performance
20.86%
3.98%
-22.61%
USD/ILS change
6.78%
1.46%
-2.32%
Total Return
22.27%
4.04%
0.00%
Repayment
122.27%
104.04%
100.00%
It is hereby clarified that a structured deposit is deemed a transaction involving special risk.The bank has financial interest
in marketing the structured deposit.Therefore, the structured deposit may be given precedence over other similar products
in respect to their suitability for the customer.
It is hereby clarified that a structured deposit is deemed a transaction involving special risk.The bank has financial interest
in marketing the structured deposit.Therefore, the structured deposit may be given precedence over other similar products
in respect to their suitability for the customer.
This document is for information purposes only. The information in this document does not represent a recommendation and/or offer to invest in this structured deposit. This document does not
constitute or contain a basis of a contract. Furthermore, this document does not come to provide the customer with certain rights or to impose the bank with any obligations whatsoever.The content
above is not a substitute for personal advice. All information and data in the document arrive from sources which are considered by the bank to be true and trustworthy as of the date when the
document was produced. Nonetheless, the bank will not bear any responsibility for the correctness, completeness, propriety and accuracy of the information in the document. Any financial investment
involves risk. Past performances do not necessarily imply on future performances.
This document is for information purposes only. The information in this document does not represent a recommendation and/or offer to invest in this structured deposit. This document does not
constitute or contain a basis of a contract. Furthermore, this document does not come to provide the customer with certain rights or to impose the bank with any obligations whatsoever.The content
above is not a substitute for personal advice. All information and data in the document arrive from sources which are considered by the bank to be true and trustworthy as of the date when the
document was produced. Nonetheless, the bank will not bear any responsibility for the correctness, completeness, propriety and accuracy of the information in the document. Any financial investment
involves risk. Past performances do not necessarily imply on future performances.
General Terms
currency
minimum Deposit
capital
Term
Offer Period
Deposit Start Date
Deposit End Dates
Initial Price
Final Price
Participation
Barrier
Interest Income Linkage
Interest Income Linkage to USD
Dividend
Highlights
ILS
10,000 ILS
100% guarantee
3 years
From Sunday, 17/07/2016 till Wednesday, 10/08/2016
11/08/2016
11/08/2019
closing Price of the Shares Basket on 11/08/2016
closing Price of the Shares Basket on 07/08/2019
100% if no barrier was breached
40%
Interest Income is linked to USD/ILS and might change according to the change in USD/ILS
during the deposit period
Will be calculated according to the change between the exchange rate for USD (positive or
negative) published on 11/08/2016 and the exchange rate for USD published on 08/08/2019
If a dividend will be paid for any share during the deposit period, it will not be included in the
total repayment to the customer
Advantages:
● The deposit enables customers to diversify their investment portfolio with a financial asset that holds the potential of high return
with full protection of the invested capital, thereby substantially reducing their investment risk.
● The deposit holds considerable potential to receive an excess return over the existing alternatives at the same risk level.
● The deposit allows exposure to the underlying assets at a relatively low deposit amount and without buy/sell fees.
Risks:
● Interest payment at maturity isn’t guaranteed and depends on the performance of the underlying assets. The deposit might
not provide a return at all.
● It is possible that the return of the deposit at maturity will be lower than the return on the alternative investment for the
same period.
● The deposit does not include the possibility of early withdrawal on the customer’s side - lack of liquidity for the period of
the deposit.
Taxation:
● If a qualifying rate event (barrier breach) occurs for all shares, i.e. they all breached the barrier; withholding tax for an
Israeli/foreign resident will be 15% of the nominal earnings.
● If a qualifying rate event (barrier breach) does not occur for all shares, withholding tax for an Israeli/foreign resident will
be 25% of the real earnings.
● Tax rates were determined in accordance with the provisions of law and directives of the Israel tax authorities as was
known on the day of the deposit start date. Tax rates are subject to changes according to any new provisions of law and
directives that may be published from time to time.
It is hereby clarified that a structured deposit is deemed a transaction involving special risk.The bank has financial interest
in marketing the structured deposit.Therefore, the structured deposit may be given precedence over other similar products
in respect to their suitability for the customer.
It is hereby clarified that a structured deposit is deemed a transaction involving special risk.The bank has financial interest
in marketing the structured deposit.Therefore, the structured deposit may be given precedence over other similar products
in respect to their suitability for the customer.
This document is for information purposes only. The information in this document does not represent a recommendation and/or offer to invest in this structured deposit. This document does not
constitute or contain a basis of a contract. Furthermore, this document does not come to provide the customer with certain rights or to impose the bank with any obligations whatsoever.The content
above is not a substitute for personal advice. All information and data in the document arrive from sources which are considered by the bank to be true and trustworthy as of the date when the
document was produced. Nonetheless, the bank will not bear any responsibility for the correctness, completeness, propriety and accuracy of the information in the document. Any financial investment
involves risk. Past performances do not necessarily imply on future performances.
This document is for information purposes only. The information in this document does not represent a recommendation and/or offer to invest in this structured deposit. This document does not
constitute or contain a basis of a contract. Furthermore, this document does not come to provide the customer with certain rights or to impose the bank with any obligations whatsoever.The content
above is not a substitute for personal advice. All information and data in the document arrive from sources which are considered by the bank to be true and trustworthy as of the date when the
document was produced. Nonetheless, the bank will not bear any responsibility for the correctness, completeness, propriety and accuracy of the information in the document. Any financial investment
involves risk. Past performances do not necessarily imply on future performances.
jbank.co.il
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